Kenyan taxman and distributor and marketer of popular Irish Whisky, Jameson, are locked in a squabble over $7 million

At the centre of the contention is the price of the brown liquor.

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  • As a result, the Kenyan taxman has detained a large consignment of the popular Irish Whisky following a disagreement with its importers over valuation of the product.
  • At the centre of the contention is the price of the brown liquor.

As a result, the Kenyan taxman has detained a large consignment of the popular Irish Whisky following a disagreement with its importers over valuation of the product.

KRA is demanding Sh700 million ($7 million) arrears from Pernod Ricard Kenya Limited, the distributor and marketer of Jameson, who has since moved to court seeking release of its products.

At the centre of the contention is the price of the brown liquor. KRA wants the importer to adjust the custom price of the goods for purposes of tax computation but Pernod Ricard Kenya has objected to the demand and filed an appeal with the Tax Tribunal.

In January this year, KRA sent Pernod Ricard Kenya a demand notice for Sh697 million covering the period between July 2012 and December 2016 on grounds that an audit had revealed massive under-declaration of the value of its imports.

Pernod Ricard then moved to the High Court after KRA detained its consignment of Jameson imports. The firm argues that it should be allowed to continue in business pending a determination of its appeal before the Tribunal on the same matter.

KRA had on July 3rd agreed to release the four consignments pending determination of the court case. But the deal never materialised causing Pernod Ricard to file a fresh application accusing KRA of refusing to release the consignment even after the importer provided a bank guarantee.

The firm argues that it continues to incur heavy warehouse charges and is running out of supplies to service its customers.

As the case continues to drag in court with no end in sight, some whisky lovers in Kenya may soon be disappointed to learn they may not be able to order their favorite whisky anymore.

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